27. Is that the best you can do?
This seven-word strategy has the power to save you thousands of dollars each year. If you use this seven-word question seven times you will save money. I use this strategy every chance I get.
Here is an example. I had a meeting in San Jose, California and when I called to reserve a room the price was $289 for one night.
My reply was $289 FOR ONE NIGHT? I live in Oklahoma, that's a month's rent, including utilities! The lowest I could get them down to was $269.
Instead of taking the room I decided to drive around looking for something a little less expensive. I came across a name brand hotel and asked the clerk how much a room was for the night. The woman behind the counter said $189. I decided to use the "is that the best you can do" question - also called "the squeeze" - and see if I could get a discount.
My first tactic was to use price shock. She came down to $169. Next I asked her if that was the best she could do. She came down to $149. Then I asked her if she had any specials going on and she lowered the price to $99. I asked her one more time if she could do any better explaining that I was on a tight budget and anything over $100 (including taxes) would cause me a lot of problems.
She lowered the price to $89!
TWO HUNDRED DOLLARS less than what the first price I was given when I first came to town! There are several things she could have done to get a higher price.
First, she came down too easy and too fast. If she had been slightly reluctant I would have stopped asking for a lower price.
Second, she could have said it was obvious that you have not checked the price at the Hilton - I would have stopped asking for the lower price.
Third, she could have said she had to check with the manager (higher authority) and walked in the back room for a moment - returning, she could have said the manager would not let her go any lower (even if the manager was not in the office).
Fourth, when I was shocked at her price, she could have acted surprised at my shock. This would have stopped me by making me feel slightly embarrassed - well, maybe a normal person would have been embarrassed.
This seven-word statement has saved me an untold amount of money over the years.
I was recently in Los Angeles working with a group of sales people and the "is that the best you can do strategy" was thoroughly explained. One of the sales people called me the next day and said he was able to save TWO THOUSAND DOLLARS on a software program he was buying.
I was working with a group of sales people in Las Vegas and a sales person called me the next day and said he was able to save EIGHT HUNDRED DOLLARS on a landscape project he was purchasing for his new home.
I was in Allentown Pennsylvania and one of the managers called me the next day and said he was able to save FIVE THOUSAND DOLLARS on a contract he was working on.
What should you do when someone asks you if that is the best you can do?
First, simply say yes.
Second, if they insist on a lower price you can consult with your "higher authority."
Third, if they still insist you can turn your higher authority into a "bad guy".
Fourth, if they still insist on a better price and you feel that to give in a little will guarantee the sale, you might come down on your price a very small amount and act as if you are really going out on a limb and taking a chance (reluctance).
Comments:
If someone asks “Is that the best you can do” you should point out why your product is priced the way it is. If you can’t justify your price, then your price really is too high or you don’t know all of it’s benefits.
Larry Edmondson
I really enjoyed the training in Richmond. I used “is that the best you can do” on the airline after I missed my connection flight back to Sarasota. I was given a free hotel, dinner, breakfast and $100.00 off my next flight. So yes it does really work.
Timothy Emmett
I am going to do a little experiment this weekend. At EVERY garage sale I attend, I will ask “Is that the best you can do?” - even if it is on something that costs $.50. I can’t wait to see how much money I can save on items that I’d usually pay the sticker price for! Morgan, my co-worker is coming with me, so I will have a witness to be sure that I follow through with my plan. Once I see it in action, I will definitely be compelled to use this when making bigger purchases.
When someone poses this question to me, surprisingly, the word “Yes” does wonders. People have the same thought that I do…”At least I asked.”
Laura J. Czajka
I have used all four tactics, depending on the situation. The reluctance tactic is most popular. I tried (is that the best you can do) the other day. I do know if I was getting a great deal, but I asked anyway. The salesperson (owner) simply said yes, and I could not get them to go lower.I did feel a little guilty, but not as much would have been in the past - so I am making progress.
Jordan de la Morandiere
I love this concept. After reading this I gave it a try. I made a reservation at a hotel. They told me the cost would be 119.00 for a king room. I ask, “Is that the best you can do?” He then told me he could give me a two doubles for 109.00. I replied, I have stayed at your hotel in the past and will more than likely stay again, but not at those prices. Long story short, I paid 75.00, for the king. I am so excited that this worked so easily I can’t wait to use it again.
Tonya Sauer
I like this response because I think we forget to ask this of our vendors that we work with on a daily basis in our offices. To our equipment company, 'is that the best you can do?', to our office supply company, 'is that the best you can do?', to our t-shirt supply person, 'is that the best you can do?'.
We must be prepared to respond to our clients as well when they ask the same of us. All of things our cost covers should be in our response to this question. 'Why yes, Mr. Customer, that is the best we can do based on the following: Fica, Futa, Suta, Workers Comp, administrative fees, recruiting fees, qualifying fees, background and drug testing...etc.'. We too are in this business to make money, so yes that is the best we can do.
Kristan Wilson
"What should you do when someone asks you if that is the best you can do? Simply say yes."